Problem:

Orange Group has been targeting the competitive product to the Apple, IPod.  The product, called the Re-Rind, would permit users to listen to music, like the IPod, but as well sync with numerous computers, such as office and home, unlike the IPod.  They desire to be perceived as a higher end product and can manufacture the product for $199 in China.  They need a 40% markup after manufacturing cost.  What is the targeted selling price?  The Marketing Department designates that  consumers will pay $275 for such a tradition and product says they need a 30% cushion (needed margin), what will the target cost of manufacture that they can support?  Must they make the Re-Rind and what would you say to them to settle the positions?